Tracxn has released its latest analysis, the “Tracxn Feed Geo Report: EdTech India 2024,” offering an in-depth look at the Indian EdTech landscape. The report provides an overview of funding trends, major players, and emerging trends in the sector.

In the first half of 2024, the Indian EdTech industry raised $215 million, a modest increase from $321 million in 2023 but still significantly below the $4.1 billion peak in 2021. The sector has seen a steep decline in funding, with 2023’s figures representing an 87% drop from the $2.4 billion raised in 2022.

Despite the presence of over 11,000 active companies, the sector faces challenges from macroeconomic conditions and a shift back to traditional in-person learning as schools reopen. However, there remains a strong demand for online courses and professional upskilling, offering a glimmer of hope for future growth.

The report highlights a 96% increase in funding in early 2024, totaling $164 million, marking a notable rebound. The peak funding quarter for the sector remains Q3 2021, with $2.48 billion raised. The first quarter of 2024 has been the highest-funded quarter in the last three quarters, accounting for over 65% of the total funds raised this year.

Neha Singh, Co-Founder of Tracxn, remarked, “The Indian EdTech sector has shown remarkable adaptability amid changing market dynamics. Although funding levels are yet to reach 2021 highs, the sector’s recent growth reflects renewed investor interest, particularly as digital innovations are integrated into traditional learning methods.”

The sector has seen 24 funding rounds exceeding $100 million, though only four occurred since early 2022. In 2024, only one such round has been recorded. Notable developments include Avanse securing $120 million in funding and Lawsikho going public. These instances illustrate potential growth areas within the sector.

The report lists top companies in the Indian EdTech space, with Unacademy leading at a $3.44 billion valuation, followed by Eruditus at $2.9 billion and upGrad at $1.86 billion. Acquisitions peaked in 2021 with 31 deals but fell to 13 in 2023. In 2024, only one acquisition has been noted—Schoolnet India’s acquisition of Genius Teacher.

Funding has predominantly been in late-stage rounds, with a peak in 2021 and a sharp drop in 2023, a 94% decline from 2021 figures. In 2024 YTD, late-stage funding totals $166 million. Early-stage investments also peaked in 2021 but saw a decline in 2023, raising $96.4 million, an 85% drop from 2022. Early-stage funding in 2024 stands at $40.4 million. Seed-stage funding, which peaked at $175 million in 2021, has dropped to $8.5 million YTD in 2024, a 76% decrease from 2022.

The Test Prep segment, once a funding hotspot with $7 billion, has experienced a significant downturn, with funding falling to $8.5 million in 2024 YTD. Continued Learning has also faced a funding decline, from $517 million in 2022 to $103 million in 2023, with $20 million raised in 2024 YTD. Blume Ventures, Wellfound, and LetsVenture are the leading investors overall, while IPV, We Founder Circle, and EvolveX are prominent in Seed-stage investments. Blume Ventures, Alteria Capital, and the Michael & Susan Dell Foundation lead in Early-stage, and Trifecta Capital, Alteria Capital, and Stride Ventures excel in Late-stage investments.

Bengaluru continues to dominate the Indian EdTech sector, accounting for over 64% of total funding, followed by Delhi and Mumbai.